Korean yarn producer forges trade ties in Egypt

Korean yarn producer forges trade ties in Egypt China may be the new kid on the block in Egypt, but Christmas wreathKorean companies have had a long relationship with the north African country.

The result is that high expectations are held by Egyptians about Korean companies and their products.

“Nokia is considered a low-end mobile phone brand in Egypt while the Samsung mobile phone is praised as a high-quality product,” said Chung Boa, 31, who has lived in Egypt for seven years.

“Compared to the first time I came here, Korea’s presence has grown exceptionally. There are major Korean conglomerates such as Hyundai and Samsung that are operating in Egypt.”

This year marks the 15th anniversary since Korea and Egypt established diplomatic ties.

Bilateral trade last year amounted to $2.8 billion, with Korean exports amounting to $1.5 billion and imports at $1.3 billion, according to the Korea International Trade Association.

But Korean direct investments in Egypt still ranks fairly low among foreign investors in the country.

DIB-Egypt, a yarn manufacturer that is part of the Dong-il Group, was a pioneer for the entry of Korean industry into Egypt.

Dong-il made its initial investment in Egypt in 1997. Although the parent group was affected by the Asian financial crisis that year, the Korean apparel subsidiary pushed ahead with the investment.

“In the beginning we rented facilities and plants owned by the Egyptian government, but in 2005 we bought the plant and manufacturing equipment,” said Kim Young-kyun, DIB-Egypt president.

DIB-Egypt today has 590 workers, including eight Korean employees, producing 5,600 tons of yarn a year.

The yarn manufactured by DIB-Egypt accounted for 11 percent of Egypt’s total yarn exports in 2008, the company said.